Profits at ubs stronger than analysts have been expecting. Analysts paying attention to questions hanging over the bank. Ubs has closed u. S. Probes into its dark pool alternative trading system. The companies cfo will join us live at 7 00 a. M. Eastern time. Meantime, bp posting a big jump in its quarterly profits driven by Strong Production numbers. However, the oil giant is warning further western sanctions on russia might hurt its business there. Bp makes about a third of its crude oil output in russia. It is the single largest Foreign Investors in that country for its nearly 20 stake in state oil companies. And eu leaders are meeting to debate economic sanctions against russia. A new list of putin associations and businesses that will face tougher measures is expected tomorrow. Lets talk about a bit of other corporate news. U. S. Investors are knew suing barclays. The attorney general accused the bank of lying to customers regarding its electronic trading platform. The investor argues she lost money after the government filed a lawsuit against the banks socalled dark pool trading venue last month. The two claims barclays made false and misleading statements and didnt disclose Material Information regarding its operations. Negotiations between bank of america and the Justice Department now may run into a bit of trouble. Weve seen this with jpmorgan and others. The journal saying the big issue now whether the bank should pay a cash penalty for the dealings of countrywide and Merrill Lynch. Bofa reportedly offered 13 billion to end the Mortgage Securities probe, but the doj is said to be demanding billions of dollars more. In the countrywide and the case and the Merrill Lynch case, its a bit of a marriage whats the phrase when you get married overnight . Shotgun wedding . Shotgun wedding. Shotgun wedding is not technically when you get married overnight, i dont believe. Shotgun marriage, isnt that when you have to get married . When you get married quickly. Within nine months. But this was a shotgun wedding that was much faster than that at the behest arguably of the government at least in the case of Merrill Lynch. Im not ignoring you, andrew. Im looking at earnings. Etna i dont want to say theyre boosting their forecast. That would not be correct. However, theyre narrowing their 2014 full year view to 654 a share. They had previously seen 635 to 655. They are raising the mid point. Yeah, theyre definitely moving that mean up, if you will. So 6. 54 for the full year, thats up about 19 cents off the bottom of the earlier range. I guess thats a fair way to say that. And we should point out that the street was looking for 654 before that. So the high end of the guidance is above where the street was. But, again, that mid range is about well, the mid range would be below where the street was right now. 1. 69 adjusted versus the 1. 60 the street was expected. Came in with revenue better than specd. 14. 5 billion. Versus the 13. 98 billion the street wag looking for. Comments from the chairman and ceo. Talking about how their business at this point speaks to the strengths of diversified portfolio of businesses and their ability to across many fronts. People have been wondering whats been happening with the Affordable Care act and how that plays into this. Well get a chance to talk to mshg about all of that tomorrow. And here you go. So they are boosting officially their official revenue projection to at least 57 billion for the full year. So eps bringing up the lower end of that range and boosting their operating revenue assumption for this year to at least 57 billion. They also adding that they continue to experience what they call moderate medical costs. It looks likes a lot of things firing on all cylinders for aetna, right . Revenue coming in beating expectations by about 500 million and boosting their revenue for the year. Talking about couventry synergies, looking at boosting production. And that should help for the full year, too. There you go. Not bad. Not a bad way to start the show. Lets call the show right now. A beat for the year. Let met give you bad news if youre an herbalife shareholder. The productsmaker cut its outlook for the year just three months after it raised that view. The companys Quarterly Earnings missed the mark hurt by raised costs. Er ba live shares soared last week after that presentation that he made, failing to convince investors. We had more in developments this morning, a story we first told you about on squawk box yesterday. Reports say microsoft is being targeted by china in an antitrust investigation. Chinese officials paid a southern visit to the companys chinese offices. Microsoft would be just the latest u. S. Company to face scrutiny for china. Qualcomm is facing penalties and could be forced to pay more than 11 billion when all is said and done. Time for your Global Markets report on this Tuesday Morning. Julia chatterley standing by. I have my fill this morning listening to you driving in. Thank you very much. How are the markets looking on your side of the Atlantic Ocean . Good morning, guys. Were relatively unchanged, evenly split between the gainers and losers. The as you can see, weve managed to pull out of the red early on in the session. The german and the french markets relatively unchanged. Managing to gain some ground. But we have been watching this morning is from the earnings in particular. Ill run you through some of the numbers here. Deutsche bank right now, around 0. 2 . A 16 year on year increase in pretax profits this morning. They said they want to be the last man standing on Investment Banking in europe. Whats overshadowing the use of future litigation costs right now. If they want to be the last man standing flat year on year growth compared to some of the rivals in the u. S. We saw, what, 15 decline. So this is a bright spot for deutsche right now. Overshadowing the whole issue is the future for litigation costs, libor, you name it. Ubs down 1. 5 . A beat on the bottom line for ubs, we saw, goldman, citi calling this a solid set of results. Its down to weak client confidence. Geosplits isnt helping, too. These impact barclays, too. Talking to regulators about that. Bp lower by around 0. 9 . Theyve impacted and come in with a 34 rise in q2 profits. They have a 20 stake in class. Lower production in q2. Theyve said production will be lower in q3, too. Theyve made a point of saying right now theyre not seeing a sanction impact on themselves or on roznet. But they say if we do see a step up in sanctions, they could see an adverse impact right now. That stock right now lower by 0. 9 . On that note, guys, ill hand it back to you. Well take a look right now and say that the futures, the dow closed higher by about 22 points. Youll see right now the nasdaq futures are down by just over a point. Dow futures down by 8. 5 points. S p is down by close to 2 points. Wti is down by 5 cents, 101. 62. Also, the tenyear is worth watching here. Mark grant pointed out yesterday that the spanish tenyear was trading at just about the same yield as the u. S. Tenure. Right now, the yields on the u. S. Is at 2. 469 . The yield on the spanish tenyear, 2. 474. I ask you, gentlemen, would you rather own ten years of spanish debt or a tenyear in u. S. Treasuries. If you can get the same yield on it, which one are you going to buy . Which one is safer . You have to go to the u. S. , not to be why . Tv people like to act like we know everything, right . Everything we say is sort of the rule. I have no idea. If it was my money, i would buy in the u. S. , if youre looking over ten years. German yields by the way, the lovelily julia chatterley, i listen to her on the radio, worldwide exchange, 5 00 a. M. Eastern. German tenyear gains are the lowest since the fiveyear began. Greece is coming to the markets in some kays with debt lower than and where would you 40 unemployment in greece, no jobs. It wad pointed out yesterday that something has to give here because that makes no sense. Lets take a look at the dollar. If youre watching the dollar, youre going to see at least at this point, euro is trading at 1. 3433. Gold prices of those who are playing along at home are higher this morning. Up by 5. 60. 1,308. 90 an ounce. Okay. Lets go to tel aviv and talk about whats happening in israel. Martin fletcher is there. Take it away. Well, its been a rough night overnight. The israeli attacks on gaza with the heaviest pounding so far over the last three weeks. Attacking targets in gaza, they bombed the house, for instance, of the former palestinian Prime Minister doing great damage with that. Theyre targeting the leaders of the islamic militants have been doing all the time. They hit the power station, the only power station in gaza. Palestinians anywhere are only getting three hours of electricity a day from that power station. Now its going to be even less. No comment from israelis why they hit the power station. The argument is continuing about who is responsible for the shelling yesterday of that share, a refugee camp killing the ten palestinians, most of them children. Was that israelis who did it or palestinians who did it . Theres this to and fro all the time. Theyre extending their operation last night. They say israel is going to embark on what he called a prolonged operation in gaza. A clear message that israel is not going to be content just with as weve been reporting all the time finding and destroying the secret tunnel network. Instead, theyre going to go longer. They want to continue until the palestinians are demilitarized in gaza. That can only come through negotiations. But earth way, it appears the israelis are now beginning to embark on a longer, deeper penetration of gaza, which will lead to more deaths on both sides. Israel is reeling after yesterday when the palestinians killed at least ten israeli soldiers. They killed five israeli soldiers. It was in an area where the israelis said there was no longer a threat to palestinian tunnels. They believe they have found them all. Theyre very close to an israeli sentiment. They killed five israelis and then, for the loss of only one palestinian, the rest of that were able to get back into gaza. A bad day for israeli military. You can see on the Prime Ministers face last night. Israel will continue deeper and longer in gaza. That portion directly in opposition to the appeal from president obama the night before. Obama called appealing for an immediate unconditional ceasefire. Martin within thank you very much. Martin fleter, that is not the only place where were seeing u. S. Tensions picking up. The United States is saying that russia violated a cold war treaty when it tested a prohibit in ground launch cruise missiles. Washington is issuing immediate bilateral talks on the issue. This is incredibly important because this goes back to the end of the cold war. 1987 is when reagan signed the agreement with gorbachev. It was seen as, really, the beginning of the end of the cold war. And if there are violations in this, it just shows you how complicated things have become at this point. Its kind of a mess. Yes, it is. Talking about yesterday, we told you about that kurdish oiled that was here off the coast of texas. A u. S. Judge signed an order to seize that order from the tanker. The judge acted on requests from the Central Government in iraq. It hadnt unloaded its disputed cardio. Iraqs Central Government says it has the claim to that cardio, arguing that it was sold by the Regional Government of kurdistan. This has been part of the splintering of iraq. We know the kurds have sent four tankers of oil. Baghdad is putting the pressure on saying no. Meantime, argentinas government making a last ditch effort to do i veteran default today. An argentine delegation will be in new york to meet with a Court Appointed mediator today. And one quick note here, we did this a couple of years ago. History says and it goes its counterintuitive. When you think your country is going to default, you buy the equities. Everybody tries to ditch out. But the smart money tends to go in. The dead service gets wiped out. Argentinas stock market, despite all the negative relates, is one of if not the single stock market this year. So a company that is able to leave itself and lets say you have a 1,000 credit card bill. You wipe it out. Its a negative on your credit rating. However, you now theoretically have the money and you can invest it in things investment in capital and whatever. I dont know who is buying into it. I understand the argentinean market has been hot. Given the this whole debt experience, you would think people would flee. I guess if maybe youre a shortterm investor, you would get out before the pop . Look 59 greece, right . I dont know whats going to happen to argentina. And you can argue whether or not greece technically defaulted. Its way too easy to even talk about that. Think about this. The market has a very short memory. Always. Always, always. Lets talk about another story in the news this morning. Dardens clinton otis is stepping down from that company amid pressure from activists investors. Companies will be celebrating the chairman or chief executive roles. The most did not come fast enough nor go as far as needed. When we come back this morning, it is the political divide of the future putting thousands of manufacturing jobs at risk. We will talk about that right after this. Also, aetna rolling out results moments ago. Earnings and revenue beating expectations and the company raising its ref knew guidance for the year. The chairman and ceo will be our guest host on squawk box tomorrow. Squawk box will be right back. Welcome back, everybody. Today the National Association manufacturing is releasing numbers. They say killing the export bank will put hundreds of high paying export jobs at risk. Joining us noub is jay timmons, the president and ceo of the National Association of manufacturing. Jay, this has been a hotly contested argument going back and forth this year. It was probably a surprise argument. Its rare that you would expect to see this much fight over the xm bank. But what did you find in this report . Yeah. You wouldnt think there would be this kind of back and forth over something that creates jobs and returns money to the United States treasury. But what we found in this report is that our Major Trading partners are financing their export credit agencies that are far morrow bust rate than we are. Countries like china, japan, korea, france, germany, even canada. So if we get rid of our xm bank, if we fail to reauthorize it, were going to put the United States and the United States manufacturers at a serious competitive disadvantage. You know, there is a hearing today on capitol hill where they look into potential trouble, any problems at the xm bavng. Whats happened there . Are they going to be finding things on capitol hill today . I dont know what theyre going to find, but obviously if theres any im pro priorities, those issues should be dealt with like they should be at any government agency. But the ultimate issue is weather the xm bank, which is financed billions of dollars worth of projects for manufacturers, exports for manufacturers and its existence and has supported hundreds of thousands actually over a million jobs in the last five years alone, whether its going to continue to exist in an economy that really cant afford too many hiccups. You know, jay, i have been surprised by the ire on this. I have been surprised by the fight going back and forth. But you and me both. Ive tried to figure out what the critics really see here. And the only thing i can come to is that theyre looking at crony capitalism. They think this is the government picking favorites. What do you say to that argument . The issue really is whether were going to allow other countries to take away our economic leadership. If we get rid of the xm bank, were going to disarm otherwise economically in a unilateral way and that just doesnt make sense. So somebody is going to win when it comes to exports. Its either going to be the United States or its going to be another country. And 95 of the worlds consumers live outside the borders of the United States. So we should be doing everything we can to increase our exports opportunities around the world. And this really has nothing to do with picking winners and losers unless you want to say we want to pick the United States to be the winner. I think we all want to do that. And we need to get past this argument because this argument seems to be really a false argument. Im not sure i disagree with you. I think i agree with you. But help me with this. What happens if i told you i wanted to double the size of the xm bank. Would you be in favor of that . Sure. I think what you have to do is you have to look at what your competitors are doing around the world. China ma is financing over 100 billion of exports every year. When nine country ves more but nobody is happy about china doing what its doing, right . Its not just china. No, its brazil, we could go through a whole list. 59 other countries have this export critters. There are so many governments that are much more involved in business than there are in this country. The question is, are you arguing that the government should be even more involved than they are today . What im arguing is that weve got to make sure we have every single tool available to us. And if other countries have this very important tool, if we have this tool that weve had since the end of world war ii, by the way, if we give up this tool while other countries are strengthening this tool, that really sends i think a pretty bad message to the American People that we dont care about creating jobs in this country and that we would like to let other countries create the jobs that we can have here in this country. So, jay, have you talked to congressman henserling about this . Yeah. Chairman henserling obviously has an opinion and we dont agree with it. If this piece of legislation gets to the floor of the house and the senate, were very